You always hear about Sioux Falls' robust economy and now some new numbers are backing it up.
Every year a local commercial real estate office releases its market outlook for the city. This year there are a couple of key indicators a comeback is in the works for Sioux Falls after a painful recession.
"A lot of times the land market gets overlooked. It's a very important segment of predicting future growth of the economy," Rob Fagnan of Bender Commercial said.
Two key housing developments, one on the city's east side, Arbor's Edge and the other in southern Sioux Falls, Prairie Hills, are now seeing a boom in lot sales and construction. That's after both developments were in financial distress.
"The land market has been a big challenge over the last couple of years and I think we're finally starting to get back to where we need to be," Fagnan said.
The number of available lots has gone down in the city from a six year supply to a three-and-a-half year supply.
"It's a great sign." Fagnan said. "Because when we look back to the good years of '04 through '07 we were sitting on a three year supply at that time. We're starting to see supply and demand line up with where it needs to be."
Another positive sign for Sioux Falls economy is that the office vacancy rate in Sioux Falls has now dropped to 10 percent, meaning many businesses are expanding or moving into town.
"And now we're seeing people finally pulling the trigger and saying we ought to do something, so we're going to expand, grow, add another location; whatever it may be. And that's just been great news," Andi Anderson of Bender Commercial said.
Anderson says several vacant buildings are now 100 percent leased. And rental rates have risen on average by $1 to $1.50 per square foot.
"For the most part things have been steadily improving over the last couple of years. It's really been a good year for Sioux Falls and again through 2013 it's just going to continue," Anderson said.
And more office space is expected to fill up before any new commercial construction goes up.
Bender Commercial is presenting its 16th Sioux Falls Market Outlook Thursday morning to an audience of 300.
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